TORONTO, Sept. 23, 2003 (PRIMEZONE) -- Ofek Capital Corp. (Pink Sheets:OFCC), announces a funding agreement to enable it to increase its revenues and profitability. Ofek obtained a letter of intent and will enter into a financing agreement with Americapital LLC to lend Ofek up to $2,000,000
Ofek is currently in negotiations with number of additional parties to enable AJM Leasing, its wholly owned used car leasing subsidiary to obtain additional line of credits at a materially lower cost of capital, in order to meet AJM Leasing's demand for its suite of product and services.
Mr. Shalom Romm, CEO and Chairman of Ofek Capital notes,
"The continued deployment of AJM's business model enables the
company to underwrite better quality leases, keep customers for
longer term, efficiently utilize credit-granting methodologies
and significantly reduce defaults and bad debt.
Expanded availability of capital should result in the
exponential expansion of revenues, as the current demand
considerably surpasses AJM's ability to finance.
Moreover, a 50% reduction in the current cost of capital and
increasing available capital should translate into a 200%
increase in profitability.
As the company is able to secure additional credit facilities
bearing lower interest rates, management forecasts the expansion
of its leasing business underwriting ability and the building of
its fleet lease portfolio to approximately 1400 cars by the end
of fiscal 2004, to 2950 cars by the end of fiscal 2005 and to
4600 cars by the end of fiscal 2006. Management estimates that by
the end of fiscal 2006 AJM will post annual Revenues of
approximately $12,000,000, Operating Income before Amortization
and Interest payments of over $9,350,000 and Net Income before
Income tax factor of almost $3,000,000."
About Ofek www.OfekCapital.com
Ofek is a North American financial services company that operates within the sub-prime lending and financing market. Ofek believes that the sub-prime market is the most lucrative niche in the financial services industry.
Ofek Capital subsidiaries include: AJM Leasing, Mortgage Bankers of North America and SecondaryMarkets.
-- Ofek leases used cars through its Ontario subsidiary, AJM
Leasing
-- Mortgage Bankers of North America, a California subsidiary,
anticipates offering traditional mortgage banking services in
24 states
-- SecondaryMarkets, a California subsidiary, anticipates the
development of a proprietary, patent pending, automated
submission and lending approval software system. It will be
state-of-the-art and capable of generating immediate loan
approval from multiple loan providers
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements.